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Standard XII
Accountancy
Debt to Equity Ratio
Which of the ...
Question
Which of the following is an accounting equation?
A
Capital = Assets + Liabilities
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B
Capital = Assets - Liabilities
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C
Assets = Liabilities - Capital
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D
Liabilities = Assets + Capital
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Solution
The correct option is
C
Capital = Assets - Liabilities
Accounting Equation :
Capital+Liabilities=Total Assets
Therefore,
Capital= Total Assets- Liabilites.
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Standard XII Accountancy
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